New Risk • Jun 29
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: ₩154.3b (US$99.8m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Market cap is less than US$100m (₩154.3b market cap, or US$99.8m). Valuation Update With 7 Day Price Move • Jun 15
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₩13,180, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 24x in the Semiconductor industry in South Korea. Total loss to shareholders of 32% over the past three years. Valuation Update With 7 Day Price Move • Apr 21
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to ₩16,230, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 24x in the Semiconductor industry in South Korea. Total loss to shareholders of 2.2% over the past three years. Valuation Update With 7 Day Price Move • Mar 04
Investor sentiment deteriorates as stock falls 20% After last week's 20% share price decline to ₩12,650, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 21x in the Semiconductor industry in South Korea. Total loss to shareholders of 12% over the past three years. Annonce • Feb 13
Avaco Co., Ltd., Annual General Meeting, Mar 26, 2026 Avaco Co., Ltd., Annual General Meeting, Mar 26, 2026, at 10:00 Tokyo Standard Time. Location: auditorium, 160-7, seongseo4chacheomdan-ro, dalseo-gu, daegu South Korea Valuation Update With 7 Day Price Move • Jan 28
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to ₩14,740, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 17x in the Semiconductor industry in South Korea. Total returns to shareholders of 13% over the past three years. Annonce • Jan 27
Avaco Co., Ltd. (KOSDAQ:A083930) announces an Equity Buyback for KRW 10,000 million worth of its shares. Avaco Co., Ltd. (KOSDAQ:A083930) announces a share repurchase program. Under the program, the company will repurchase up to KRW 10,000 million worth of own shares pursuant to a contract with NH Investment & Securities Co., Ltd. The shares will be repurchased for cancellation, stock price stabilization, and enhancement of shareholder value. The repurchase program will expire on January 27, 2026. As of January 26, 2026, the company had 394,166 treasury shares within scope available for dividend and no shares in treasury through other repurchase. Upcoming Dividend • Dec 22
Upcoming dividend of ₩500 per share Eligible shareholders must have bought the stock before 29 December 2025. Payment date: 27 April 2026. Payout ratio is a comfortable 25% and this is well supported by cash flows. Trailing yield: 3.4%. Lower than top quartile of South Korean dividend payers (3.6%). Higher than average of industry peers (0.4%). New Risk • Nov 27
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 2.9% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 2.9% per year for the foreseeable future. Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Declared Dividend • Nov 08
Dividend of ₩500 announced Dividend of ₩500 is the same as last year. Ex-date: 29th December 2025 Payment date: 27th April 2026 Dividend yield will be 3.3%, which is higher than the industry average of 1.0%. Sustainability & Growth Dividend is well covered by both earnings (31% earnings payout ratio) and cash flows (22% cash payout ratio). The dividend has increased by an average of 16% per year over the past 6 years. However, payments have been volatile during that time. EPS is expected to grow by 22% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Annonce • Nov 07
Avaco Co., Ltd. announces Annual dividend, payable on April 27, 2026 Avaco Co., Ltd. announced Annual dividend of KRW 500.0000 per share payable on April 27, 2026, ex-date on December 29, 2025 and record date on December 31, 2025. Buy Or Sell Opportunity • Aug 06
Now 30% overvalued after recent price rise Over the last 90 days, the stock has risen 8.8% to ₩14,760. The fair value is estimated to be ₩11,320, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 17% over the last 3 years. Earnings per share has grown by 22%. Revenue is forecast to grow by 36% in 2 years. Earnings are forecast to grow by 46% in the next 2 years. Reported Earnings • Mar 22
Full year 2024 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2024 results: EPS: ₩1,776 (up from ₩306 in FY 2023). Revenue: ₩305.5b (up 64% from FY 2023). Net income: ₩26.4b (up ₩22.1b from FY 2023). Profit margin: 8.6% (up from 2.3% in FY 2023). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 2.0%. Earnings per share (EPS) exceeded analyst estimates by 22%. Revenue is forecast to grow 19% p.a. on average during the next 2 years, compared to a 15% growth forecast for the Semiconductor industry in South Korea. Over the last 3 years on average, earnings per share has increased by 19% per year but the company’s share price has only increased by 12% per year, which means it is significantly lagging earnings growth. Annonce • Feb 12
Avaco Co., Ltd., Annual General Meeting, Mar 26, 2025 Avaco Co., Ltd., Annual General Meeting, Mar 26, 2025, at 10:00 Tokyo Standard Time. Location: auditorium, 160-7, seongseo4chacheomdan-ro, dalseo-gu, daegu South Korea Valuation Update With 7 Day Price Move • Feb 11
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to ₩15,580, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 14x in the Semiconductor industry in South Korea. Total returns to shareholders of 59% over the past three years. Upcoming Dividend • Dec 20
Upcoming dividend of ₩200 per share Eligible shareholders must have bought the stock before 27 December 2024. Payment date: 16 April 2025. Payout ratio is a comfortable 16% but the company is not cash flow positive. Trailing yield: 1.6%. Lower than top quartile of South Korean dividend payers (3.9%). Higher than average of industry peers (0.8%). Valuation Update With 7 Day Price Move • Dec 16
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to ₩13,040, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 11x in the Semiconductor industry in South Korea. Total returns to shareholders of 14% over the past three years. Annonce • Nov 25
Avaco Co., Ltd. (KOSDAQ:A083930) announces an Equity Buyback for KRW 3,000 million worth of its shares. Avaco Co., Ltd. (KOSDAQ:A083930) announces a share repurchase program. Under the program, the company will repurchase up to KRW 3,000 million worth of own shares pursuant to a contract with NH Investment & Securities Co., Ltd. The shares will be repurchased for incineration and to enhance shareholder value. The repurchase program will expire on May 26, 2025. As of November 24, 2024, the company had 395,807 treasury shares within scope available for dividend and no shares in treasury through other repurchase. New Risk • Aug 30
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 33% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (33% accrual ratio). Minor Risk Paying a dividend despite having no free cash flows. Reported Earnings • May 20
First quarter 2024 earnings released: EPS: ₩396 (vs ₩305 loss in 1Q 2023) First quarter 2024 results: EPS: ₩396 (up from ₩305 loss in 1Q 2023). Revenue: ₩46.3b (up 230% from 1Q 2023). Net income: ₩5.12b (up ₩9.19b from 1Q 2023). Profit margin: 11% (up from net loss in 1Q 2023). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 17% per year whereas the company’s share price has increased by 15% per year. Valuation Update With 7 Day Price Move • May 03
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to ₩18,870, the stock trades at a trailing P/E ratio of 63.9x. Average trailing P/E is 25x in the Semiconductor industry in South Korea. Total returns to shareholders of 59% over the past three years. Reported Earnings • Mar 22
Full year 2023 earnings released: EPS: ₩306 (vs ₩1,358 in FY 2022) Full year 2023 results: EPS: ₩306 (down from ₩1,358 in FY 2022). Revenue: ₩186.9b (down 14% from FY 2022). Net income: ₩4.26b (down 77% from FY 2022). Profit margin: 2.3% (down from 8.3% in FY 2022). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 8% per year whereas the company’s share price has increased by 9% per year. Valuation Update With 7 Day Price Move • Mar 12
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₩15,360, the stock trades at a trailing P/E ratio of 27.8x. Average trailing P/E is 21x in the Semiconductor industry in South Korea. Total returns to shareholders of 24% over the past three years. Upcoming Dividend • Dec 20
Upcoming dividend of ₩300 per share at 1.9% yield Eligible shareholders must have bought the stock before 27 December 2023. Payment date: 18 April 2024. Payout ratio is a comfortable 51% but the company is not cash flow positive. Trailing yield: 1.9%. Lower than top quartile of South Korean dividend payers (3.5%). Higher than average of industry peers (1.0%). New Risk • Nov 29
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 3.6% Last year net profit margin: 6.6% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risks Earnings have declined by 20% per year over the past 5 years. High level of non-cash earnings (21% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (3.6% net profit margin). Shareholders have been diluted in the past year (8.0% increase in shares outstanding). New Risk • Oct 26
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 8.0% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Earnings have declined by 15% per year over the past 5 years. High level of non-cash earnings (20% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Shareholders have been diluted in the past year (8.0% increase in shares outstanding). Valuation Update With 7 Day Price Move • Jul 26
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to ₩17,900, the stock trades at a trailing P/E ratio of 14.9x. Average trailing P/E is 15x in the Semiconductor industry in South Korea. Total returns to shareholders of 165% over the past three years. Valuation Update With 7 Day Price Move • Jun 29
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to ₩22,900, the stock trades at a trailing P/E ratio of 19x. Average trailing P/E is 15x in the Semiconductor industry in South Korea. Total returns to shareholders of 231% over the past three years. Valuation Update With 7 Day Price Move • Jun 12
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to ₩20,750, the stock trades at a trailing P/E ratio of 17.2x. Average trailing P/E is 15x in the Semiconductor industry in South Korea. Total returns to shareholders of 219% over the past three years. Valuation Update With 7 Day Price Move • Apr 06
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to ₩20,600, the stock trades at a trailing P/E ratio of 15.2x. Average trailing P/E is 12x in the Semiconductor industry in South Korea. Total returns to shareholders of 325% over the past three years. Valuation Update With 7 Day Price Move • Mar 14
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to ₩14,020, the stock trades at a trailing P/E ratio of 15.5x. Average trailing P/E is 10x in the Semiconductor industry in South Korea. Total returns to shareholders of 209% over the past three years. Upcoming Dividend • Dec 21
Upcoming dividend of ₩300 per share Eligible shareholders must have bought the stock before 28 December 2022. Payment date: 21 April 2023. Payout ratio is a comfortable 33% but the company is not cash flow positive. Trailing yield: 2.2%. Lower than top quartile of South Korean dividend payers (3.3%). Higher than average of industry peers (1.8%). Board Change • Nov 16
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 3 experienced directors. No highly experienced directors. 1 independent director (2 non-independent directors). was the last director to join the board, commencing their role in . The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Valuation Update With 7 Day Price Move • Oct 31
Investor sentiment improved over the past week After last week's 21% share price gain to ₩17,100, the stock trades at a trailing P/E ratio of 42x. Average trailing P/E is 9x in the Semiconductor industry in South Korea. Total returns to shareholders of 238% over the past three years. Valuation Update With 7 Day Price Move • Oct 04
Investor sentiment improved over the past week After last week's 17% share price gain to ₩11,800, the stock trades at a trailing P/E ratio of 29x. Average trailing P/E is 9x in the Semiconductor industry in South Korea. Total returns to shareholders of 148% over the past three years. Buying Opportunity • Jul 12
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 11%. The fair value is estimated to be ₩12,895, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 19% over the last 3 years. Earnings per share has declined by 46%. Buying Opportunity • Jun 23
Now 24% undervalued after recent price drop Over the last 90 days, the stock is down 14%. The fair value is estimated to be ₩13,116, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 19% over the last 3 years. Earnings per share has declined by 46%. Board Change • Apr 27
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 3 experienced directors. No highly experienced directors. 1 independent director (2 non-independent directors). was the last director to join the board, commencing their role in . The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Upcoming Dividend • Dec 22
Upcoming dividend of ₩300 per share Eligible shareholders must have bought the stock before 29 December 2021. Payment date: 13 April 2022. Payout ratio is on the higher end at 99%, however this is supported by cash flows. Trailing yield: 2.4%. Within top quartile of South Korean dividend payers (2.4%). Higher than average of industry peers (0.9%). Annonce • Feb 25
Avaco Co., Ltd., Annual General Meeting, Mar 26, 2021 Avaco Co., Ltd., Annual General Meeting, Mar 26, 2021, at 10:00 Korea Standard Time. Valuation Update With 7 Day Price Move • Jan 18
Investor sentiment improved over the past week After last week's 21% share price gain to ₩13,850, the stock is trading at a trailing P/E ratio of 9.7x, up from the previous P/E ratio of 8x. This compares to an average P/E of 19x in the Semiconductor industry in South Korea. Total returns to shareholders over the past three years are 106%. Is New 90 Day High Low • Jan 11
New 90-day high: ₩11,400 The company is up 6.0% from its price of ₩10,750 on 13 October 2020. The South Korean market is up 29% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Semiconductor industry, which is up 43% over the same period. Upcoming Dividend • Dec 22
Upcoming Dividend of ₩300 Per Share Will be paid on the 7th of April to those who are registered shareholders by the 29th of December. The trailing yield of 3.0% is in the top quartile of South Korean dividend payers (2.6%), and it is higher than industry peers (0.8%). Valuation Update With 7 Day Price Move • Oct 13
Market bids up stock over the past week After last week's 16% share price gain to ₩10,750, the stock is trading at a trailing P/E ratio of 11.1x, up from the previous P/E ratio of 9.6x. This compares to an average P/E of 20x in the Semiconductor industry in South Korea. Total returns to shareholders over the past three years are 79%. Is New 90 Day High Low • Oct 13
New 90-day high: ₩10,750 The company is up 38% from its price of ₩7,790 on 15 July 2020. The South Korean market is up 11% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Semiconductor industry, which is up 6.0% over the same period. Is New 90 Day High Low • Sep 18
New 90-day high: ₩8,950 The company is up 23% from its price of ₩7,260 on 19 June 2020. The South Korean market is up 14% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Semiconductor industry, which is up 5.0% over the same period.